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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (32962)	12/7/2008 7:58:12 AM
From: jrhana	Read Replies (1) \| Respond to of 78652

Can't resist adding my two cents here. I believe this period of low natural gas prices will work to encourage the installation of natural gas heating and cooking systems in the NE. In addition the increasing use of NG by utility companies is being encouraged. Once these NG systems are in place, they are unlikely to be dismantled when the price of NG again starts to rise. So those NG related companies with staying power may well benefit in the future from today's NG market. In addition to making some practical sense, those converting to NG will feel that great green inner glow of environmental correctness. And the powers that be are indeed touting NG as the fuel of the future. My daughter reports seeing posters everywhere in Washington (D.C.) extolling the great virtues of NG. Apparently you can't ride on the D.C. Metro without seeing such posters prominently displayed. Personally I would search for E&P (or other NG related) companies with both solid finances and intelligent management. My minimum test for managerial intelligence would be intelligent enough to have not over leveraged both the company and themselves personally when NG prices where peaking. Although patience may be required, this to me would be the ideal time to be slowly acquiring quality NG related companies.

To: Paul Senior who wrote (32962)	2/22/2009 2:24:24 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78652

NG - wrong wrong wrong I have been on this sector. All stocks we have discussed here are a disaster XEC, WMB and probably SE. Earnings are way down. WMB's estimates are 0.6-1$ (quite a range) SE around 1.1-1.2$ (just enough to make the dividend). However i don't think that NG prices are going to stay low for long, regardless of the economy - look at the rig count chart: wtrg.com With one year delay between rig count and production, i say next year we are going to see higher NG prices. That ought to help those stocks too. Both WMB and SE have a fee based business that provides a floor.